I just spent an hour listening to Mr. Conti describing a program called Lot Flipper. I find a lot for sale, and if they like my deal - they take it and do whatever with it - but will pay $8700 as a finders fee (when it closes) for the lot. I give them a $1000 deposit to show my sincerity, they send some easy to follow short training and I am off to find a lot.

You are not at all being negative! It sounds like some kind of a bird dog program. When I find a lot that meets their criteria, I use their proof of funds letter (updated monthly, they said) to place the offer. I submit info on the lot into their program, "Deal Genie" and if the program likes the lot, I get $8700 when they close on the lot. That's it - "...don't know of an easier system to make money" they say - no money out of my pocket. I am required to give a $1,000 deposit so they know I am serious. Upon my first closed deal, I get that deposit back by double to $2000, making my first check $10,700. No limit to the number of lots I can do, but of course the "job" offer is limited to only a select few... $8700 is a number they reached as an average of some sort, nothing magical.

Concerning your comment to save the $1000, I would do that. But how can I sell to an investor what is not mine - certainly not without serious marketing efforts to locate a buyer, my own EM, etc? They make it sound, my take here, like they are so flush with cash that they are too busy to find lots to build on, so this program finds the additional land to develop.

My questions were one, how do I know they really take my offer and not just circumvent my "finders fee"? How ridged are the requirements - if they want prime property only, why would they need this "help"?

I don't know anything about this program, but when someone says "don't know of an easier system to make money", just give us $1,000, it sounds like they've found an easy system to make THEIR money, $1,000 at a time.

Seriously, how can they say it takes no money out of pocket, but you need $1,000 to work with them?

One other thing - the email about Peter Conti and this "program" was sent from Preston Ely. From that name I was interested in viewing this deal; if it were not from Preston - I would have just deleted.

5. Total package house + lot must be in the price range of $400,000 to $1,300,000.

Those requirements don't sound all that difficult, BUT in many areas including most of flyover country, there are few candidates. Around here there are very few houses in those price ranges. Only 7% of the houses currently listed for sale are above $400,000.and above $800,000 is only 1.5% of the houses. Around here the market for $1.3M houses is very thin, less than half of one percent. Then lot prices have escalated as there are more regulations every year including endangered species, wetlands, flood plains, hydro-geological studies, traffic studies, and density reductions, that lot prices are often 25% or more of the total package price. At 15% for a $400,000 total package the lot price would have to be $60,000 or less. there just are not many $60,000 lots available that you would put a $340,000 house. So the numbers narrow the scope of possible lot candidates. Perhaps in high price areas like CA, the numbers might work better.

Wrote this up yesterday but apparently it didn't post. Others have made some same comments, but here are mine:

A) Always do a Google search of the guru(s). (I'll let you determine what you read about these two people). These guys have a thread or two on BP as well.

B) I had a friend who asked me to listen in on this webinar with him. He had listened once and it was done again, and he wanted my opinion.

I had him turn it off about 45 minutes into it when I saw the numbered steps slide. Their "easy" system works something like this:

1) You find vacant lots in high-end residential areas. They want homes in the area to be in the $400k to $1.5 million range.

2) You negotiate the lot price and it must meet this formula - Determine the average market price of a home built on that lot and take 15% of that value. Negotiate the price of the lot to be that 15% amount or less.

So if the average home would be $500,000 then the max price for the lot should be $500k x .15 = $75,000.

3) You get the lot under contract.

4) You submit the deal through their "Deal Genie".

5) If it passes their Deal Genie, then they buy the lot and they give you your money the day they close.

You do realize in step 3 YOU are getting the lot under contract and if the "Deal Genie" rejects the deal, then you have a contract to buy the lot. Cancel the sale and you lose your deposit.

Oh yeah, they breezed over the "language" you put in the contract for a 10 day inspection period. That gives you the time to submit the deal and see if it is accepted. Problem is, I know of few sellers who will accept a contract on dirt with a 10 day "inspection" window.

One other thing - you will be looking long and hard for a lot that you can buy for 15% of market value prices. As an example, below is a screenshot from Trulia.com (ignore the debate on how good are market prices on Trulia & Zillow).

The three prices in the red circles are for lots that are currently listed for sale. All around $165k - $170k. Notice the values of the surrounding homes are in the $650k to $800k range. So let's say average is $650k. That means you have to try and get one of those lots for $97,500.

Now it could be that the those three lots are way overpriced at $170k, but a recent lot sale one block to the east (in yellow outline) that did have some prep work already done (stacked stone bridge over a culvert and the lot was cleared) sold for $225,000 a few months ago.

You will be doing a lot of bird-dogging to find the 15% deals. They said something about 90 days money back for your $1,000 deposit, but you have to have submitted three deals in that time. So if you don't get 3 lots under contract and submit them in that 90 days, you don't get your $1,000.

Don't get me wrong, this could work for people. Do you have the time and confidence you can find at least 3 deals in 90 days?

My friend just sent me a link to the recorded "webinar" so I skipped through it to the slides where they discussed the steps.

The 10 day inspection is so that you can get the contract on the lot without a deposit. The gurus will pay the earnest money deposit for you if the deal passes their "genie" at then end of the 10 days. So this is how it's a "none of your own money" deal. Except of course for the $1,000 deposit to get their training and access to the "Deal Genie".

Im listening to the same webinar right now. (live or recorded I dont know)

The webinar is sponsered by Cameron Dunlap.

I have personally met Peter Conti in Dallas in 2008. He has a great book on buying lease options.

I knew I was going to listen to this webinar today because I do business with Cameron Dunlap currently with his ibuyhouses.com exclusive territory set up

and his iFlip CRM and I really like that. You can check it out here if you like. iFlip

Anyway back to this land subject, I knew I was going to check it out so today while Im driving I listened to my podcast of Bigger Pockets that they did with a guy named Seth. So from what I learned on that + this post I have some new exit strategies for flipping land and I still have may $1000.

Also someone mentioned above that some areas may be hard to find property meeting their requirements, but supposedly, you can find the deals online, they don't have to be in your area, - you don't have to visit them.

I am a Realtor that has been approached by 2 people that are paying for this course. It is the same exact email they tell their customers to send to Realtors that have a good zillow rating and a few testimonials. I submitted many offers and had 14 accepted after all was said and done, but absolutely none of them got accepted by the "Lot Flipper" people and all of them were within their requirements. The lot flipper reps tell me they submit the offers to the "deal genie" and get no response for the 10 day inspection period, and if they pester them enough they tell them something generic, like the comps weren't high enough price per sqft. So it sounds like a definite SCAM! My niche market is lots and land in TN, NC, and GA primarily (42 lots last year and over that this year) so if anyone wants to make money flipping they should do it the old fashion way of getting a good Realtor and invest wisely. They claim to pay you around 8k for each lot but you can make way more than that if you do your research.

Originally posted by Doug Snavely:
One other thing - the email about Peter Conti and this "program" was sent from Preston Ely. From that name I was interested in viewing this deal; if it were not from Preston - I would have just deleted.

I heard the webinar, but did not purchase the program. I have multiple SFH lots in California that meet "their requirements." I emailed both Peter and Jerry direct and asked them to contact me or have one of their "Elite Clients" in the program contact me to discuss purchasing some or all of the lots. No response, so what does that tell you! Their program is to get your $1,000.

As Frank Blaydes indicates it is certainly geared from an affiliate based program of unlimited funding ( for homes or land ) rooted in the new rules. IT makes beautiful sense when you think about it. Offer unlimited funding for deals for people looking for money to do deals. Skirt the new private lending rules and when it works it is a win win for everyone.

The only problem is it makes them money whether its good for the other 90% of people who actually try and submit a deal. They have the money from the hosting of the websites or a share as an affiliate of the initial $1000 you paid for what seems like, smells like and is a valuable tool for the small percentage who

A) Actually do a deal ( this is not the gurus nor the affiliates' fault just pure human nature and nature of real estate investor hopefuls)

B) Actually do/submit deals FOUND BY THEIR SYSTEM OR HOSTED SITES THEY GIVE YOU and the deal meets the criteria i.e. gets funded.

* This is typically two separate outcomes. Deals get submitted but do all that fit get funded.

If you have a deal that fits these criteria post it here on BP and in the correct area and if its at 65% -75% of ARV or current as is value you will find money for it and buyer to add to your relationships ( not buyer's ) list.

That is 2'fer and is free.... It just takes dedication, education, & motivation. Money ALWAYS finds good deals. BP is a built in buyers list. I am just sayin :-